Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects

 

To provide mortgage insurance to HUD-approved lenders for the purchase or refinancing of existing multifamily housing projects, whether conventionally financed or subject to federally insured mortgages at the time of application for mortgage insurance. The program allows for the long term mortgages that can be financed with Ginnie Mae Mortgage-Backed Securities.

General information about this opportunity
Last Known Status
Active
Program Number
14.155
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
GUARANTEED/INSURED LOANS
Program Accomplishments
Not Applicable.
Authorization
National Housing Act, Section 223(f), as amended; Housing and Community Development Act of 1974, as amended, Public Law 93-383. 12 U.S.C. 1715n.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Mortgagors may be either private or public. The property must consist of not less than 5 living units and must meet the following criteria: (1) the mortgage cannot exceed 85 percent of the HUD estimated value of the project; (2) three years must have elapsed from the later date of completion of project construction or substantial rehabilitation, or the beginning occupancy date of application for mortgage insurance; (3) the remaining economic life of the project must be long enough to permit at least a ten-year mortgage term or 75 percent of the estimated life of the physical improvements.
Beneficiary Eligibility
All persons are eligible to occupy such projects subject to normal occupancy restrictions.
Credentials/Documentation
Documentation regarding the characteristics of the property and the qualifications of the purchaser or existing mortgagor in refinance projects are assembled by the mortgagee and submitted with the application. Management plan must be submitted at time of application for commitment. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The applicant will submit a formal application for conditional or firm commitment through a HUD approved mortgagee.
Award Procedure
The local HUD Multifamily Hub and Program Center reviews the application to determine proposal eligibility. If the project meets program requirements, the local HUD Multifamily Hub and Program Center issues the commitment to the lender to insure the project.
Deadlines
Not Applicable.
Approval/Disapproval Decision Time
Processing time depends on the degree of preparation of the sponsor, and whether MAP or TAP is used.
Appeals
If an application for mortgage insurance is denied, HUD will state the reasons for denial.
Renewals
The term of a commitment to insure may be extended under certain circumstances when more time is required to close the loan.
How are proposals selected?
Not Applicable.
How may assistance be used?
Section 223(f) insures lenders against loss on mortgage loans. These loans may be used to purchase or refinance existing multifamily housing projects. Only projects not requiring substantial rehabilitation are acceptable under this section. The estimated cost of required repairs may not exceed 15 percent of the estimated value after repairs or $6,500 per unit adjusted by a high cost factor, whichever is greater and may not involve the replacement of more than one major system. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-value and debt service limitations. Prevailing wage requirements under the Davis-Bacon Act do not apply to this program.
What are the requirements after being awarded this opportunity?
Reporting
No reports are required.
Auditing
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards.
Records
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
The mortgage term should not be less than 10 years nor should it exceed the lesser of 35 years or 75 percent of the estimated remaining economic life of the physical improvements. See the following for information on how assistance is awarded/released: Over the life of the loan.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub or Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearest HUD Field Office listed in Appendix IV.
Headquarters Office
Carmelita James 451 Seventh Street SW, washington, District of Columbia 20410 Email: carmelita_a._james@hud.gov Phone: (202) 402-2579
Website Address
http://www.hud.gov/offices/hsg/hsgmulti.cfm.
Financial Information
Account Identification
86-4077-0-3-371.
Obligations
(Guaranteed/Insured Loans) FY 11 $9,229,142,649; FY 12 est $6,176,000,000; and FY 13 est $5,457,000,000
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Fact Sheet, Section 223(f) Mortgage Insurance; 24 CFR 200, HUD Handbook 4565.1, Mortgage Insurance for the purchase or Refinancing of Existing Multifamily Housing Projects, Section 223(f) available on www.hudclips.org. The Multifamily Accelerated Processing (MAP) guide may be found at http://www.hud.gov/offices/hsg/mfh/map/maphome.cfm.
Examples of Funded Projects
Not Applicable.

 



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